TURNOVER at listed cables manufacturer Cafca Limited increased by 1 033,33% to ZWL$37,4 billion during the third quarter of this year compared to the same period last year, buoyed by exports to regional markets.
The turnover was in historical terms. In the same period last year, revenue stood at ZWL$3,3 billion.
“Export volumes were 106 tonnes in the current quarter versus the same quarter last year at 91 tonnes,” company secretary Caroline Kangara said in a quarterly trading update for the period ended June 30, 2023.
“Our customers in Malawi continue to experience difficulty in obtaining foreign currency, so stock replacement there is slow. Mozambique, Rwanda and Tanzania sales were in line with forecast.”
The company exports some of its products to Tanzania, Rwanda, Malawi and Mozambique. During the period, the company’s profit before tax surged 94% to ZWL$18,1 billion.
Local volumes for the quarter were 6% down on the same quarter last year with the largest drop beingin the utilities sector. There was also a marked drop in all the other sectors towards the end of the quarter due to the tight ZWL$ monetary policy.
In the outlook, Kangara said the financial year projection was being affected by the tight monetary policy which is impacting negatively on volumes.
“The last quarter of the financial year outlook is mixed with the tight monetary policy impacting negatively on volumes while the large project orders we have in the mining sectorimproving volumes to ensure we have a good quarter,” she said.
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“We have seen, with the ZWL$ tightly controlled in the market, a shift in our US$ sales to 85% of turnover thus ensuring adequate foreign currency for our import needs.”
Cafca manufactures and supplies cables for transmission and distribution of energy and information; it has its primary listing on the Zimbabwe Stock Exchange and its secondary listing on the Johannesburg Stock Exchange.
